Join To Receive Our 'New Issue' Alert
For Email Newsletters you can trust

BDC FS Investment Corporation Begins Public Trading

April 18, 2014 - 11:35pm

FS Investment Corporation (ticker:FSIC) is a Business Development Company (BDC) which was formed in 2007 and commenced operations in 2009. On April 16th existing shareholders became free to sell their shares into the public market as shares were listed on the NYSE.  There are no new shares being offered as the BDC comes public, but the last shares sold in private offerings were sold for $10.80/share.  Similtaneously with the start of public trading the company made a tender offer for up to $250 million in shares in a dutch tender--for a price of not less than $10.35 nor more than $11.

FS Investment Corporation is a venture of Franklin Square Capital Partners and GSO Capital Partners (which is the credit arm of Blackstone).  The BDC is the 4th largest publically traded BDC with $4.4 billion in assets as of 12/31/2013.  FSIC primarily makes secured loans to less than investment grade private companies--over 70% of their investments are senior 1st or 2nd lien loans.

FSIC will pay monthly dividends and has been paying 7.2 cents/share per month and recently announced an increase to 7.425 cents/share (correction from earlier)--additionally the company announced that they will be paying a special dividend soon.  The current yield on 7.425 cents/share per month equals a current yield of 8.7% (this does not include any special dividends which may be paid.

Given the quality management and advisors to FSIC it would appear that this issue should go on our watch list for potential purchase and we will be keeping our eye on the issue.  As you may recall we consider BDC's to be reasonable holdings in a flat to slowly rising economy, while we believe that they should be sold when economic growth is waning and there are possibilities of recession in the near future.

The shares have traded in a range of $10.00 to $10.30 the 1st 2 days of trading on heavy volume.  Volume should settle down in a few days and the price will likely land right where it closed on Thursday ($10.21).

We have added FS Investment Corporation to our BDC List.


From the Blog

BDC FS Investment Corporation Begins Public Trading
A Wild Ride This Week
New REIT Farmland Partners Now Trading
NEW MLP Enable Midstream Partners
REIT Public Storage Remains the Preferred Stock King
A Good Day For "Rearranging" a Bit
Legacy Reserves LP Prices Fixed to Floating Rate Preferreds - Trade OTC Today
Trillion-Dollar Firms Dominating Bonds Prompting Probes in U.S.
Last Week, The Coming Week and Other Stuff
Income Issues Hang in There
New Seaspan Notes Now Trading
Top economists warn Germany that EMU crisis as dangerous as ever
Houston Fills With Crude Oil That Can’t Be Shipped Out
We Have Executed our Common Stock Hedge
GasLog Ltd. Announces Filing of Registration Statement For MLP
New Seaspan Notes Now Trading
Will Earnings Confirm Stock Downdraft?
Did the Light Bulb Finally Go On Friday?
Hold on To Your Hats - Fridays Job Report Could Be a Market Mover
Up, Up and Away We Go!!
Looking at the 2013/2014 Static Junk (or Unrated) Model
How The Supreme Court Could Stop the 401(k) Rip-off
3 Months In - A Portfolio Review
Seaspan Prices $25 Note Issue
Economy Not Too Bad--Treasury Market Says Bullshit
Seaspan to Sell a $25 Debt Issue
China’s Developers Face Shakeout as Easy Money Ends: Mortgages
Banks in Chinese city show stacks of cash to reassure depositors
Can LINN Energy Cover Its Distribution?
Stay Away From this New Farm Land REIT
Preview of the Week Ahead
Farmer Mac to Sell Non Cumulative Preferred Stock (Updated)
Farmer Mac to Sell Non Cumulative Preferred Stock
Digital Realty Trust Preferred Priced
Red Everywhere. Looking for Excuses to Sell
Digital Realty Trust to Sell a Preferred
As credit tightens at home, Chinese sell Hong Kong luxury real estate
Another MLP Warning Article
Ticking Timebomb: Moscow Moves to Destabilize Eastern Ukraine
Risks Mount for Retirees in Limited Energy Partnerships
Another Exciting Week Ahead
Good Economic Numbers, but Markets Plunge on Fear. Interest Rates Fall on Flight to Safety
Equities Hang Tough Through Uncertainties. Interest Rates Move Lower
Paranoia leads Vladimir Putin to the point of no return
11 Ugly Charts That Confirm China's Dramatic Slowdown
China's Li Keqiang warns investors to prepare for wave of bankruptcies
Global Debt Exceeds $100 Trillion as Governments Binge, BIS Says
Barrons - Energy Investors Suggest 6 MLPs to Buy Now
Outlook for Apartment REITs in 2014
MarkWest's Distribution Is Too High
REITs Up Nearly 5% in February
How BDC Taxes Work
Subscribe to From the Blog